China's Battery Titans BYD And CATL Forge Alliance To Power EVs With Solid-State Batteries, Posing Challenge To Japan And The West

In a significant move, China’s leading battery and car manufacturers have come together to develop solid-state batteries, a technology that could revolutionize the electric vehicle (EV) market.

What Happened: The Chinese government has initiated a national alliance to drive the commercialization of solid-state batteries. The initiative, named the China All-Solid-State Battery Collaborative Innovation Platform (CASIP), was established in January, reported Nikkei Asia.

The consortium includes key players from the government, academia, and industry, such as EV battery rivals CATL and BYD Co Ltd BYDDY. The goal is to establish a solid-state battery supply chain by 2030.

China is intensifying its research and development of next-generation batteries, leveraging technologies like artificial intelligence. The consortium will focus on basic research, key technologies, and the joint development and manufacturing of EVs equipped with solid-state batteries.

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Participating battery makers include CATL, FinDreams Battery (a BYD subsidiary), CALB, EVE Energy, and Gotion High-tech. Notably, six of the top 10 global automotive battery makers are part of this initiative, reflecting China’s strong lineup in this field.

“We need to be prepared for the risk that all-solid-state battery technology could overturn” China’s advantage in automotive batteries, said Ouyang Minggao, a Tsinghua University professor who specializes in the development of automotive-related technologies.

Why It Matters: The Chinese government’s concerted effort to develop solid-state batteries is a significant move that could challenge the dominance of Japanese and Western companies in the EV market.

This development comes on the heels of a ban on Pentagon battery procurements from Chinese manufacturers, including CATL and BYD, by the U.S. This ban, which is set to commence in October 2027, is part of the National Defense Authorization Act.

Earlier, in December, Tesla’s EV market edge was threatened as CATL and BYD unveiled new cost-effective sodium-based batteries. The shift to sodium-ion technology is gaining momentum globally, with South Korea’s leading battery manufacturers also investing in this technology.

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